The following facts apply to the pension plan of Boudreau Inc. for the year 2014.
accounting teacherE20-4 The following facts apply to the pension plan of Boudreau Inc. for the year 2014.
Plan assets, January 1, 2014 |
| $490,000 |
|
Projected benefit obligation, January 1, 2014 |
| 490,000 |
|
Settlement rate |
| 8 | % |
Service cost |
| 40,000 |
|
Contributions (funding) |
| 25,000 |
|
Actual and expected return on plan assets |
| 49,700 |
|
Benefits paid to retirees |
| 33,400 |
|
Using the preceding data, compute pension expense for the year 2014. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2014 and the year-end balances in the related pension accounts.
BOUDREAU INC. | |||||||||||||||
|
| General Journal Entries |
| Memo Record | |||||||||||
Items |
| Annual Pension |
| Cash |
| Pension Asset/ |
| Projected Benefit |
| Plan | |||||
Balance, January 1, 2014 |
| ||||||||||||||
Service cost |
| ||||||||||||||
Interest cost | |||||||||||||||
Actual return | |||||||||||||||
Contributions | |||||||||||||||
Benefits | |||||||||||||||
Journal entry, December 31 | |||||||||||||||
Balance, December 31, 2014 | |||||||||||||||
10 years ago
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